Plug-In Car Grants Overhauled

Plug In Grant
Most folk know that you can get a grant towards the cost of each new electric (plug-in) car or van you buy, if it meets certain conditions.

Grants are available for cars and vans as follows:

35% off the cost of a car, up to a maximum of £5,000
20% off the cost of a van, up to a maximum of £8,000

However, f rom 1 March this year (2016), plug-in car grant levels are changing. The new grant levels will be based on the emissions and range of the vehicle.

Ultra low emission vehicles will be placed into categories on the basis of their CO2 emissions and their zero emission range. The categories are:

Category 1 — CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles

Category 2 — CO2 emissions of less than 50g/km and a zero emission range between 10 and 69 miles

Category 3 — CO2 emissions of 50 to 75g/km and a zero emission range of at least 20 miles

Based on these categories, from March 1, 2016 the following rates will apply:

£4,500 for eligible category 1 vehicles

£2,500 for eligible category 2 vehicles

£2,500 for eligible category 3 vehicles
The grant will be maintained at these levels until March 2017, or until a prescribed number of each type of vehicle have been sold, whichever is sooner.
The grants will be reviewed when 40,000 category 1 vehicles, and 45,000 category 2 and 3 vehicles are sold (with both totals including cars sold before March 2016).
As of December 2015, 23,000 claims had been submitted for category 1 vehicles and 28,000 claims for category 2 and 3 vehicles.